1 October 2020 | Publication
Retrocession Fees: Harder to Keep in
Switzerland
1 October 2020 | Publication
Retrocession Fees: Harder to Keep in
Switzerland
IFLR Magazine Autumn 2020
The publication examines the Swiss legal framework governing retrocession fees, i.e. commissions paid by third parties to financial intermediaries for promoting certain products. It highlights key Federal Supreme Court rulings, confirming that such fees generally belong to clients and must be disclosed or returned unless validly waived. A recent decision further clarifies disclosure requirements, making it more difficult for wealth managers to retain retrocessions and increasing transparency obligations.
The publication examines the Swiss legal framework governing retrocession fees, i.e. commissions paid by third parties to financial intermediaries for promoting certain products. It highlights key Federal Supreme Court rulings, confirming that such fees generally belong to clients and must be disclosed or returned unless validly waived. A recent decision further clarifies disclosure requirements, making it more difficult for wealth managers to retain retrocessions and increasing transparency obligations.
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Authors
External Author
Tamara Grigoras